Mortgage Rates Flat Today — Here’s Why Santander Is Now One to Watch

Market stays quiet as lenders hold fire

Today, no lenders have updated their rates. So that gives an opportunity to explore the recent movements made by lenders such as Santander's weekend rate cuts to see how it has affected the market.

Santander leads with competitive cuts

Santander made headlines on Friday with notable rate reductions across their purchase range. Their 2-year fixed rate at 60% LTV dropped from 4.87% to 4.75% – a 12 basis point cut that brings them into genuinely competitive territory. At 75% LTV, the improvement was identical, with rates falling from 4.98% to 4.86%.

The Spanish-owned lender also trimmed their tracker rates, with the 60% LTV option falling 15 basis points from 4.90% to 4.75%. More substantial cuts came at higher LTV levels, particularly the 21 basis point reduction on their 75% LTV tracker, down from 5.07% to 4.86%.

These moves position Santander as a serious contender in the purchase market, particularly for borrowers with larger deposits. Their 10-year fixed rates also saw cuts, dropping 15 basis points to 5.22% at 60% LTV and 5.27% at 75% LTV.

HSBC's dramatic increases still reverberating

While today brought no new changes, HSBC's substantial rate increases from late March continue to reshape market dynamics. The high street giant pushed their first-time buyer rates significantly higher, with 2-year fixes jumping 60 basis points across most LTV bands.

At 60% LTV, HSBC's first-time buyer 2-year rate climbed from 4.57% to 5.17% – a hefty increase that takes them well above current market leaders. The pattern was consistent across LTV bands, with 75% LTV rising from 4.64% to 5.24% and 85% LTV jumping from 4.83% to 5.43%.

HSBC's home mover rates followed a similar trajectory, though with some variation. Their 60% LTV 2-year fixed rate increased from 4.49% to 5.09%, while 5-year fixes saw 50 basis point rises across the board.

Mixed signals from Nationwide and NatWest

Nationwide delivered a mixed bag of changes on 1 April. Their first-time buyer rates saw modest increases, with 90% LTV 2-year fixes rising from 5.15% to 5.30% – a 15 basis point jump. However, their 5-year rates showed more substantial movement, with the same 90% LTV band increasing 25 basis points from 5.25% to 5.50%.

This means that the increase makes mortgages less affordable especially for first-time buyers with small deposits as they will be required to make bigger monthly payments. Additionally, the large increase in 5-year fixed rate mortgages will make mortgages costly especially for those who seek long-term certainty. This will mean that more people will consider mortgages that offer lower rates in the long run.

The building society's tracker rates remained largely stable, with most seeing just 10 basis point increases. Their 60% LTV tracker for first-time buyers edged up from 4.19% to 4.29%.

NatWest also made significant adjustments on 31 March, though their changes followed a clearer upward pattern. Purchase rates at 60% LTV jumped 28 basis points, with 2-year fixes moving from 4.52% to 4.80%. Their remortgage rates saw even larger increases, with 75% LTV 5-year fixes surging 67 basis points from 4.74% to 5.41%, meaning borrowers will be faced with higher monthly repayments.

Current market leaders emerge

With the recent shake-up, Halifax now leads the 2-year fixed market with rates from 4.64% at 60% LTV, having updated their pricing over the weekend. They also offer the most competitive tracker at 3.96% – a full 21 basis points below the current Bank of England base rate of 3.75%.

For 5-year fixes, Halifax again takes the lead at 4.78%, while Nationwide offers the best 10-year rate at 5.19% for their home mover products at lower LTV levels.

In simple terms: Halifax is now one of the cheapest lenders across their product ranges like their fixed and tracked mortgages.

Market trends showing divergent strategies

The recent pattern reveals lenders adopting markedly different strategies. While HSBC and NatWest have pushed rates substantially higher – suggesting either funding cost pressures or deliberate volume management – Santander has moved in the opposite direction with meaningful cuts.

This is giving borrowers an opportunity to look at the market and start shopping around for the best rate that meets their needs entirely. UK borrowers need to use RateWatch to gain access to the latest updates about mortgage rates on over 464+ lenders. Staying up-to-date with these changes gives borrowers an advantage to find the best rates across the entire market - live.

Remortgage rates continue to carry premiums over purchase products at most lenders, with HSBC showing particularly stark differences. Their 90% LTV remortgage 2-year rate sits at 5.79%, compared to 5.29% for equivalent purchase products.

High LTV market sees significant movement

Smaller deposit borrowers will be faced with a new situation following some changes. HSBC's 90% LTV first time buyer mortgage rate stands at 5.29% currently, while Nationwide’s is at 5.30%. The cost of lending with high LTVs has significantly risen at some banks.

The NatWest 90% LTV purchase mortgage stands at 5.18% compared to 28 basis point higher than before, and the remortgage counterpart is at 5.42%.

Outlook for the week ahead

The latest news are suggesting one thing: lenders are splitting the market.

Lenders such as HSBC and NatWest are increasing their mortgage rates, but Santander is cutting their rates. Borrowers who are making smaller deposits are being charged more and remortgaging is becoming more expensive. But, this split means borrowers have the opportunity to review their current plan and explore the wider market for more competitive rates.

The base rate environment at 3.75% continues to provide a floor for tracker products, with Halifax's 3.96% tracker looking increasingly attractive as fixed rates climb. Borrowers considering fixes versus trackers face a more complex calculation than in recent months.